Payam Javan: Elon Musk said Friday that his $44 billion acquisition of Twitter is “temporarily on hold” as he attempts to determine the actual number of spam and fraudulent accounts on the social media platform.
The Tesla billionaire linked to a Reuters article from May 2 about a quarterly report from Twitter that projected that bogus or spam accounts accounted for less than 5% of the company’s “monetizable daily active users” in the first quarter.
Both Twitter and Tesla stocks moved drastically in opposing directions, with Twitter stock falling 14% and Tesla stock, which Musk had proposed using to help fund the Twitter deal, rising 7%.
To fund the acquisition, Musk has already sold more than $8 billion worth of Tesla stock.
Musk’s latest tweet comes only one day after the company sacked two of its top executives. Twitter said it is “pulling back on non-labor costs to ensure we are being responsible and efficient” and is delaying most hiring, except for crucial areas.